George Osborne is considering bringing forward the £250m electrification of the Manchester to Leeds rail route as part of his Treasury infrastructure spree.

It is understood the chancellor is preparing to sanction extra funds for Network Rail, owner of Britain's rail tracks and stations, to electrify the north trans-Pennine route. An announcement could come in his autumn statement on Tuesday.

If Osborne approves the work it would be an early victory for the rail industry's pitch for the network's next five-year plan, which runs from 2014 to 2019. Their proposals, published in September, contained a number of electrification schemes, including the Cardiff Valley and the Midland Mainline route from Bedford to Sheffield.

Unlike their diesel-powered counterparts, electrically powered trains do not carry heavy fuel and can accelerate more quickly, as well as being less prone to breakdowns. That argument convinced the previous government, which announced electrification schemes in the 2009 pre-budget report.

Osborne has already backed a reduction in planned rail fare increases, which would have seen season tickets rise by an average of 8%. Instead, fares will rise by 6%. The reduction also applies to the London Underground network, boosting the capital's mayor, Boris Johnson, as he prepares to enter an election year.

There are hopes he will also announce measures to guarantee jobs at Britain's last remaining train factory in Derby, owned by Canada's Bombardier, which is seeking contracts for new trains on the CrossCountry and Southern franchises.